Both Companies House and HMRC impose their own penalties for late submission of accounts.

Companies House

Late filing penalties were introduced in 1992 to encourage directors of companies to file their accounts and reports on time, because this information is required for the public record. All companies - private or public, large or small, trading or non-trading must send their accounts and reports to Companies House every year. If you submit company accounts and reports late, the law imposes an automatic penalty.

The level of the penalty depends on how late the accounts reach Companies House and is shown in the following table.

Length of period (measured from the date the accounts are due)

Penalty

Penalty

Ltd., LLP

PLC

Not more than 1 month

£150

£750

More than 1 month but not more than 3 months

£375

£1,500

More than 3 months but not more than 6 months

£750

£3,000

More than 6 months

£1,500

£7,500

The penalties will be doubled if a company files its accounts late in 2 successive financial years

HMRC

Length of period (measured from the date the accounts are due)

Penalty

Corporation Tax Return

1 day late

£100

3 months late

Another £100

6 months late

HMRC will estimate your company’s tax bill and add a penalty of 10% the unpaid tax

12 months late

Another 10% of any unpaid tax

If tax returns are late 3 times in a row, the £100 penalties are increased to £500 each.